Clickbots and fake traffic have long been used to cheat the system and steal money from online advertisers. This is a growing trend that has become more sophisticated each year. According to the University of Baltimore, this fraud cost around $35 billion in 2020.
This article will discuss how click and traffic bots work, the main types, and how marketers can mitigate the damage.
What is PPC Fraud?
Pay-per-click (PPC) advertising charges advertisers each time their ad is clicked. They can promote their products and services through various platforms, including YouTube, social networks, and Google Ads Display Networks, often aiming to place their website at the top of search engine results pages (SERPs).
However, PPC fraud is a major problem. Fake users can account for up to 40% of clicks, a concerning statistic.
Main Reasons Behind PPC Fraud
Publisher and Affiliate Fraud
This type of fraud is common among bloggers and affiliates who generate false clicks on ads on their websites to circumvent the system.
– The blog owner registers with Google AdSense.
– They release space on their site for advertisers.
– They are paid 68% of the advertiser’s click-through fee for each ad click.
– Bots or hired individuals simulate real clicks on the ads.
Fraud by Competitors
Competitors may engage in unethical practices to drain your ad budget and reduce your ads’ effectiveness, especially on search networks.
Revenge
Disgruntled former employees, ex-partners, or dissatisfied clients might click on your ads to deplete your budget.
Top Sources of Fake Clicks
– Bots: Software programmed to click links on various websites, mimicking real user behavior.
– Click Farms: Networks of humans or automated systems generating clicks for specific links.
– Botnets: Networks of thousands of IPs, domains, and bots. An infamous example is Methbot, which used over 500,000 IPs and 6,000 domains to earn between $3 million and $5 million daily.
How to Protect Your Ads Against PPC Fraud
While it’s impossible to completely eliminate PPC fraud, you can reduce your losses through the following methods:
– Honeypots: Ad servers use fake advertisements to detect and block bots.
– Exclusion Lists: Block suspicious IP addresses, website IDs, and device IDs.
– Targeting: Refine your ads to avoid regions known for generating false clicks.
– Indicator Analysis: Monitor for sudden increases in click-through rates, traffic spikes, and bounce rates, which could indicate fraud.
Dealing with Click Fraud
Click fraud is not new. Despite increased restrictions from Google, criminals continue to find new ways to exploit systems. Due to privacy policies, Google can’t always determine which browsers are sending fraudulent traffic. This type of fraud can affect any market or budget size.
Advertisers must stay vigilant, monitor their metrics, and push platforms like Google to enhance their fraud prevention measures. Additionally, investing in diversified marketing strategies beyond paid advertising is crucial.
Reach out to Pixel Mint Media today for state-of-the-art online advertising solutions.
